| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -4.6% | -22.0% |
| 2025 | 2024 |
|---|---|
| -22.0% | -14.5% |
Ace River Capital returned -4.55% in Q4 2025 and -21.95% for the full year, underperforming the S&P 500 and Russell 2000. The manager attributes poor performance to valuation compression and idiosyncratic events rather than permanent business value impairment. The fund maintains a concentrated portfolio of small- and micro-cap businesses with durable economics and tangible assets, avoiding software, finance, and insurance. Key holdings include Vox Royalty, which has returned 160% since initiation and benefits from record gold prices driven by inflation and geopolitical concerns. RCI Hospitality declined 25% following executive legal charges but trades at crisis valuation despite intact operations. MarineMax position was reduced by half through covered calls given cyclical headwinds. The manager views current small-cap dislocation as creating long-term opportunities, remaining patient and prepared to act when valuations become compelling. Focus remains on intrinsic value over short-term price movements with willingness to tolerate volatility.
Ace River Capital maintains a highly concentrated portfolio of small- and micro-cap businesses with durable economics, tangible assets, and long runways for reinvestment, focusing on companies where competitive advantages are structural rather than ephemeral.
Manager remains patient, focused, and prepared to act when valuations become compelling. Volatility does not concern the manager; permanent capital impairment does. The manager views current small-cap dislocation as creating potential long-term opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | DSHK, GLFE, HZO, RICK, VOXR | Concentration, gold, real estate, royalties, small caps, value |
VOXR RICK HZO GLFE DSHK |
Gold prices continue to reach record highs, driven by inflation concerns, geopolitical instability, and inconsistent trade and fiscal policy. Vox Royalty's royalty-based business model provides… |
| Aug 7 2025 | 2025 Q2 | HZO, RICK, VOXR CN | drawdowns, mispricing, opportunity, Patience, volatility |
RICK VOXR HZO |
The letter discusses how episodic market volatility driven by macro uncertainty and policy shocks creates opportunities to deploy capital into mispriced securities. Management emphasizes remaining… |
| May 6 2025 | 2025 Q1 | RICK, VOXR | - | - | - |
| Jan 25 2025 | 2024 Q4 | HZO, RICK, VOXR | - | - | - |
| Oct 23 2024 | 2024 Q3 | DSHK, HZO, RICK, VOXR | - | - | - |
| Jul 15 2024 | 2024 Q2 | HZO, RICK, VOXR | - | - | - |
| May 3 2024 | 2024 Q1 | DSHK, RICK, VOXR | - | - | - |
| Sep 1 2024 | 2023 Q4 | RICK, VOXR | - | - | - |
| Oct 13 2023 | 2023 Q3 | DSHK, HZO, RICK | - | - | - |
| Sep 7 2023 | 2023 Q2 | DSHK, RICK | - | - | - |
| Mar 31 2023 | 2023 Q1 | HZO, RICK | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
| 2025 Q2 |
VolatilityManager emphasizes volatility as a structural feature of markets, noting that rare events occur far more frequently than expected. April's volatility event validated their convexity approach, with systematic monetization during stress periods. December saw compressed volatility with VIX hitting year lows, creating buying opportunities despite short-term costs. |
VIX Implied Volatility Realized Volatility Convexity Options |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | RICK | RCI Hospitality Holdings, Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | cashflow, consolidation, Monopolies, Reinvestment, valuation | Login |
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | VOXR | Vox Royalty Corp. | Materials | Precious Metals & Minerals | Bull | TSX | cashflow, Catalysts, Metals, Optionality, royalties | Login |
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | HZO | MarineMax, Inc. | Consumer Discretionary | Specialty Stores | Bull | NYSE | Cyclicality, Margins, Marinas, services, transformation | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | VOXR | Vox Royalty Corp. | Materials | Precious Metals & Minerals | Bull | New York Stock Exchange | balance sheet, cash flow, Gold, inflation hedge, royalties | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | RICK | RCI Hospitality Holdings Inc. | Consumer Discretionary | Leisure Facilities | Bull | NASDAQ | Asset Coverage, buybacks, cash flow, Governance, Real Estate | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | HZO | MarineMax Inc. | Consumer Discretionary | Leisure Products | Bull | New York Stock Exchange | Asset backed, Cyclicality, Leisure, Marinas, Real Estate | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | GLFE | Green Light Financial Enterprises | Consumer Discretionary | Leisure Facilities | Bull | Dubai Financial Market | asset monetization, illiquidity, Optionality, restructuring, Special situations | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | DSHK | Drive Shack Inc. | Consumer Discretionary | Leisure Facilities | Bull | Dubai Financial Market | asset monetization, illiquidity, Optionality, restructuring, Special situations | Login |
| TICKER | COMMENTARY |
|---|---|
| DSHK | During the period, Drive Shack Inc. (DSHK) completed a corporate restructuring that resulted in the rebranding of the equity to Green Light Financial Enterprises (GLFE) along with a change in listing status and trading venue. This transition reflects the company's ongoing efforts to reposition its assets and capital structure following the wind-down of its legacy entertainment operations. The position remains highly speculative and illiquid and is sized accordingly. While near-term fundamentals remain challenged, the thesis is driven by optionality around asset monetization, balance-sheet outcomes, and any improvement in liquidity or strategic direction under the new structure. We do not intend to add to the position and will look to reduce exposure opportunistically if liquidity improves. |
| GLFE | During the period, Drive Shack Inc. (DSHK) completed a corporate restructuring that resulted in the rebranding of the equity to Green Light Financial Enterprises (GLFE) along with a change in listing status and trading venue. This transition reflects the company's ongoing efforts to reposition its assets and capital structure following the wind-down of its legacy entertainment operations. The position remains highly speculative and illiquid and is sized accordingly. While near-term fundamentals remain challenged, the thesis is driven by optionality around asset monetization, balance-sheet outcomes, and any improvement in liquidity or strategic direction under the new structure. We do not intend to add to the position and will look to reduce exposure opportunistically if liquidity improves. |
| HZO | MarineMax remains an attractive long-term asset owner with a valuable portfolio of marinas and waterfront real estate. However, absent near-term catalysts and given the cyclical nature of the retail boating business, I elected to sell in-the-money covered calls during the quarter. The shares were called away, and the position was reduced by roughly half. While I like management's stated shift toward higher-margin service, storage, and marina revenue, it remains unclear how much of this mix shift reflects structural improvement versus cyclical weakness in retail sales. I continue to monitor the position but will remain selective in deploying additional capital. |
| RICK | During the fourth quarter, RCI Hospitality shares declined roughly 25% following the filing of bribery and tax-related charges against the CEO, CFO, and other executives by the New York Attorney General in September 2025. These developments created significant legal and governance uncertainty and drove the stock to what I would describe as crisis valuation without crisis operations. Importantly, the core business remains intact. Cash flow continues, share repurchases have not stopped, and the company now trades below the estimated value of its owned real estate, effectively assigning little value to ongoing earnings power. Short interest has increased to roughly 12% of the float, further compressing an already small share base following recent buybacks. The CEO and CFO have since stepped down, reducing governance risk, and while there may be fines or balance-sheet impacts ahead, I believe much of this risk is already reflected in the stock price. The long-term thesis is unchanged. I view current prices as an opportunity and expect to add to the position as conditions warrant. |
| VOXR | Since initiating a position in Vox Royalty in Q4 2023, it has grown into the Fund's largest holding and has returned approximately 160% at the time of writing. Gold prices continue to reach record highs, driven by inflation concerns, geopolitical instability, and inconsistent trade and fiscal policy. Vox's royalty-based business model provides leveraged exposure to these trends while avoiding the capital intensity and operational risks faced by traditional mining companies. The company continues to add producing royalties, expand cash flow, and maintain a clean balance sheet. I view Vox as both a long-term compounder and a natural hedge against macro uncertainty. No change in thesis. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
